dedalos
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Using retained profit to purchase a residential property
I have a single director limited company A. The company was providing consulting services under the relevant SIC code. The company has retained profit in its balance sheet. Now as a Director, I would like to cease trading activity, keep the company open, keep the profit in the company balance sheet and in the business account and later use the existing retained profit to purchase via the limited company A, a buy-to-let property, using the retained profit to as deposit for the purchase of the property and stump duty. Question: Are there any tax implications in using retained profit from my existing company to purchase a property via the limited company. Are there any HMRC rules that i need to be aware in relation to the use of retained profit from past trading activity that may prohibit me to use it for purchasing (via the same limited company) a residential buy to let property.